Streamlined Filing for Late US Tax Returns in 2024

 

As an Australian visa holder in the USA, you’re required to file an annual US tax return.

If you failed to file past US tax returns, or you filed incorrectly, you may be subject to fines or lose refunds owed to you.

Uptrend Advisory offers streamlined filing services to help Australian expats get caught up with late or amended tax returns.

If your US tax returns are late or require amendments, we’ll help you get (back) on track.

 

Our extensive knowledge of the US and Australian taxation systems gives you peace of mind and makes US tax compliance effortless and efficient for you:

  • If you haven’t filed your US taxes in three or more years, do you know how to reduce—or avoid—penalties?

  • If you failed to disclose foreign income, accounts, assets, and investments on your US tax returns, do you know how to amend them without penalty?

  • Do you know what your US tax obligations are after you file late or amended returns using streamlined filing?

 

Here's what you need to know about getting caught up with late, incomplete, or incorrect US tax returns as an Australian expat:

US tax basics for Australian expats

How to file late and amended US tax returns

Streamlined filing eligibility criteria

Penalties for filing late or amended US tax returns

Uptrend Advisory makes streamlined filing easy for you

Disclaimer: The following tax guide for Australian expats in the US is intended for general information purposes only. Contact us for taxation advice specific to your circumstances.

US Tax Basics for Australian Expats

Filing a US Tax Return and Paying US Taxes

To be US tax compliant as an Australian visa holder in the US, you’re required to:

  • File an annual US tax return 

  • Disclose foreign income, assets, accounts, and investments

  • Pay all applicable US tax on your worldwide income

The details of what you need to file, disclose, and pay depend on your tax residency status, whether or not you own foreign financial assets, and other factors. Exemptions apply for specific visa types.

Residency Status for Tax Purposes

Your tax residency status affects which Internal Revenue Service (IRS) forms you need to file, what you need to report on your tax return, and which US taxes you pay. 

Your tax residency status is determined by the substantial presence test. If you meet these rules the IRS considers you a US resident for tax purposes.

So even if you hold a non-immigrant visa, such as an E-3 visa, it’s possible to also be a US tax resident. There are some exemptions for specific visa types, including J-1 visas.

Foreign Income, Assets, Accounts, and Investments

If you have foreign income, assets, accounts, or investments, you’re required to report them on your US tax return. This means you must file additional IRS forms, such as Form 8938 Statement of Specified Foreign Assets. 

FBAR Reporting

In addition to filing a US tax return, US citizens and tax residents must file a Foreign Bank and Financial Accounts Report (FBAR). This is required to report any foreign financial accounts with an aggregated balance over US$10,000 at any time during the tax year.

Filing Deadlines

The deadline for filing your US tax return and FBAR is typically April 15th (or the next available work day) for the financial year ending the previous calendar year. 

Penalties

You could face penalties if you fail to:

  • File a US tax return

  • Fully and correctly disclose foreign income, assets, accounts, and investments on your US tax return

  • File an FBAR

  • Pay all applicable US taxes on your worldwide income

There are IRS amnesty programs to bring you into US tax and reporting compliance, including streamlined tax filing. However, there are specific criteria you must meet to use streamlined filing procedures.

If you file your current US tax returns without addressing past mistakes, you may inadvertently expose those mistakes and be subject to penalties. That’s why it’s advisable to address past mistakes and become compliant before moving forward with current tax returns. 

It’s essential to know how to get caught up with late, incomplete, or incorrect tax returns to minimize or avoid penalties.

How to file late and amended US tax returns

There are IRS streamlined tax filing procedures and delinquent FBAR filing procedures to bring you into US tax compliance if you: 

  • Failed to file a US tax return and/or FBAR 

  • Filed your US tax returns but failed to report foreign income, assets, accounts, and investments using the relevant IRS forms

  • Need to amend your US tax returns because they were incorrect or incomplete

However there are strict eligibility criteria to use streamlined filing, and exclusions apply. If you get it wrong you could be subject to penalties or paying more tax.

Streamlined filing eligibility criteria

To use streamlined filing you’re required to certify that your failure to do any of the following was due to non-willful conduct:

  • File US tax returns including all required forms and FBARs

  • Report all foreign income, assets, accounts, and investments

  • Pay all US tax due

This means your conduct was due to negligence, inadvertence, a mistake, or conduct arising from a good faith misunderstanding of the law.

In addition, you must be an individual taxpayer. You can reside within or outside the US, however different streamlined procedures apply.

You're ineligible for IRS streamlined tax filing procedures under certain conditions, such as if you’re under IRS audit. 

Willful Conduct

If you’re unable to certify that your failure to report all foreign income, assets, accounts, and investments, pay all US tax due, and/or file US tax returns including FBARs was due to non-willful conduct, you’re ineligible for streamlined filing. Civil and criminal disciplinary action and penalties could apply in the event of willful non-compliance.

Uptrend Advisory doesn’t provide legal services so where appropriate, we’ll refer you to a legal professional.

Penalties for filing late or amended US tax returns

The IRS created streamlined filing to encourage individuals who made a genuine mistake or oversight to voluntarily get caught up with late, incomplete, or incorrect tax returns. This includes filing amendments due to foreign income, assets, accounts, and investments being omitted or incorrectly disclosed. It also enables outstanding US taxes to be paid.

So if you qualify for IRS streamlined tax filing, and use it to file late or amended tax returns, the IRS generally waives penalties.

However, if you don’t qualify for streamlined filing, specialist tax advice is recommended. That’s because you’re still required to get back into tax and reporting compliance. But if you don’t do this correctly or attempt to use streamlined filing, you may face penalties.

Uptrend Advisory makes streamlined filing easy for you

Feeling overwhelmed about getting caught up on your late, incomplete, or incorrect US tax returns and FBARs?

As Aussie expats ourselves, we know how overwhelming the US tax system can be. For your convenience and peace of mind, we offer streamlined filing services for Australian expat visa holders.

With our extensive knowledge of the dual US and Australian tax systems, you can trust us to bring you into US tax and reporting compliance, with minimal or zero penalties for you.

Our streamlined filing service includes the preparation and submission of: 

  • Income tax returns for the prior three tax years

  • FBARs for the prior six tax years

  • Statement of explanation to certify why your tax returns and FBARs weren’t filed or were incomplete and require amendments

We’re easy to reach and we stay in regular contact with you. This allows you to focus on the important reasons you came to the US in the first place—whether it’s to excel in your career or experience something new. 

If you’re an employer or host sponsoring an Australian expat, connect them with our experienced and efficient tax specialists. That way, they’re focussed on enhancing your organization with their skills and experience rather than worrying about US tax compliance.

Your US Tax Obligations After Using Streamlined Filing Service

After getting caught up with late or amended tax returns through streamlined procedures, you’re expected to comply with US tax filing obligations for all future years. We can help you stay on track with your future US tax returns.